If your disability rating is at least 50% (and combat related) then you may be able to receive both your full Reserve pension and your VA disability compensation. It was rarely approved during the last 13 years of war, and in a drawdown it would be extremely unlikely. Many Reserve/Guard members have 3500-4500 points at retirement, so you’re a little on the higher end of the bell curve. Can anyone show me in writing where it says you can or cannot get credit for your Midshipmen summer cruise? When you joined the Navy in 2001, BUPERS and DFAS should have adjusted your PEBD and DIEMS to July 1992 and immediately started paying you at the >8 years rate. ... has less than 30 years of creditable service, and is under the age of 62 at the time of retirement I live in Florida. If they’re struggling to calculate your pension then you’d direct their attention to the DoD Financial Management Regulation (DoD 7400.14-R, volume 7B, http://comptroller.defense.gov/Portals/45/documents/fmr/Volume_07b.pdf). Way back on page 31 of that PDF, the FERS section says that the CSRS rules in section 22A2 also apply to FERS. I was specifically told that “High 3″ does not apply to me. The only suggestion I have for this situation is to assume that your pension will keep up with the current pay tables. If you want an active-duty retirement then you’ll have to stick around for 20 years of active duty or a Temporary Early Retirement Authorization at 15-20 years (these are generally only used during drawdowns). If you’re on active duty every day of the next two years, then at the end of that time you’ll have earned another 731 points and you’ll have 20 good years. Third, what year did you start your retirement? Now let’s calculate the pensions: 1. (https://www.bol.navy.mil/) If that’s not accessible then you could try BUPERS’ Reserve help desk at 866-827-5672. Those designated areas have changed significantly over the last few years so your mobilization may no longer be eligible to qualify for an earlier retirement. I really want to stay till then. I still get the question every few months. I am currently a gray area retiree, transferring into the Retired Reserve April 1, 2015. You’d want to make sure you have the latest edition: https://www.opm.gov/retirement-services/publications-forms/csrsfers-handbook/c022.pdf For example, section 22A2.1-2.E on page 8 of that document goes into the detail you seek, and it essentially says that only the active-duty time of your Reserve career counts… but not every period of active duty. Your Date of Initial Entry in to Military Service is after 8 September 1980, so you’re under the High Three pension plan. With three years’ time in grade *after* you start receiving O-5 pay, then you’ll retire as an O-5. That’s 65 days of AT orders or an extended ADSW, although some of that would be allowances for food & housing (BAS, BAH). An estimate of your 2017 pension is: 11,313 / 360 x 2.5% x $7844.70 = $6165/month. I’ve heard those numbers being thrown about at drill weekends, but they’re a great way to project your benefits out 5-10 years…, Great article. Here it is: https://the-military-guide.com/buying-your-military-service-credit-in-the-federal-civil-service/. Joined the MN Army National Guard, as an enlisted man, deployed to Iraq for 2 years, entered Sanctuary Program, and retired from Army with over 20 years of active federal service. The formula’s resulting dollar figure is rounded down. (See the last paragraph of the post.) My unit had several folks enter sanctuary and I helped all of them with this process. can i apply my active duty points ? When is the right time to retire? When you “retire awaiting pay” instead of discharge or separation, then the longevity column is the years of service that you’d reach as if you’ve been on active duty the entire time up until your pension starts. The real significance of $3328/month (in today’s dollars) is that your savings/investments may only have to bridge the gap between the day you stop earning a paycheck and the day you start your Reserve pension. Thanks for the question, NLDekker, but the whole point of the sentence (in the intro to the post) is that most of the Reserve calculators aren’t accurate. Learn more about Military Buyback and Creditable Service for Federal Retirement. However (depending on the nature of your disability) you may also qualify for a medical disability retirement. (Because it’s in today’s dollars, when you start the pension it should have about the same buying power.) For instance, I have 1826 points and have point value of .426 (O3 with 22 years). You say there are ‘many military retirement calculators online’. https://www.dfas.mil/RetiredMilitary/manage/ras/. Thanks. just difficult to figure out who can help make that happen. It’s taken over three years and it may need to be re-accomplished again due to lapse in shelf-life of the paperwork. I have since sent a request back to them asking them to confirm if 10 US Code 1370 applies or does not apply to me and I am awaiting a response. Now that you have the final 36 months of pay, you add all those numbers up and divide to get the final average monthly high-three pay: ($4815.90 * 6 + $4740.00 * 12 + $4674.60 * 12 + $4521.00 * 6) / 36 = $4694.35. A warrant officer must have served on active duty or in an active Reserve status for at least 31 days”. Unlike the active-duty retirement formula, the extra Reserve/Guard years themselves are not part of the calculation. A recent post stated you can receive your FERS retirement benefits calculated at the rate of .011 with 20 years of service at age 62. You’d add another 12 months of max pay for that rank in the 2010 pay table: $4674.60 * 12. (A few Reserve/Guard veterans may be eligible to begin receiving their pension earlier than age 60. If that’s correct then your Reserve/Guard pension is indeed calculated from your final base pay. I’ve heard you have to repay it, but can’t find the source document, and am also wondering if it’s the pretax or the post tax VSP amount. Then, if a Soldier also gets 90 days credit next fiscal year, he or she would be able to retire at age 59.5, or 180 days before age 60. That’s a tough question, Arthur! The only rule for Reserve officer retirements is that you’ve served satisfactorily in the billet for at least six months. Did this post help? We already know the pay tables for 2019: https://the-military-guide.com/2019-military-pay-chart/ but we don’t know the paytables for 2020 or 2021. It’s possible that future pay tables (when you’ll be 60 years old) would change the longevity years for the maximum pay. The accumulative effect can continue for a number of years in 90-day blocks, with the only stipulation being that a Soldier cannot retire before age 50. That too would meet the criteria. I also have an 80% VA disability, which leads me to my second question. Where? It’s not “just” your retired pay. A little time and expense now can save you thousands of dollars of frustration and litigation later. For a spreadsheet or a calculator, you could assume that military pay grows with the rate of inflation. If that might be an issue, though, you can read more about it at this post from my friend (and ANG officer) Ryan Guina: https://themilitarywallet.com/national-guard-and-reserve-early-retirement-age/, You could wait to start your Reserve pension on 1 January 2019, but it works against you with High Three. Let me know if I’ve made any incorrect assumptions. If you’re looking for a US army Reserve retirement calculator, you will find yourself redirected to the My Army Benefits calculator. Thanks for the info, and the quick response! That base pay number is multiplied by the service multiple to get the monthly pension amount. Excellent website, thanks! You’ll earn even more points (and good years) as an O-5. Now you need your pay scale. Another issue is “combat zone”. However, the minimum percentage for temporary disability retirees will equal 50%. This retirement plan offers a pension after 20 years of service that equals 2.5% of your average basic pay for your three highest paid years, or 36 months, for each year you serve. I already have a disability rating of 30% from my active duty time when I was involuntary separated. You can read reviews and see how exceptional my customers are treated to give you an idea of the man behind those reviews. Doug, if I hit 20 good years at age 43, can I still be affiliated with the Reserves(pay or non-pay)? You wrote: “Note … (It’s also possible for officers commissioned from NROTC to receive points for the days they were on active duty for midshipman summer training… )”. Even if you’re eligible to start your pension earlier than age 60 (due to combat deployments or national emergencies of at least 90 days in a fiscal year), Tricare starts at age 60. My situation briefly: Retired from the National Guard in Nov of 2014 with 20 years/6 months of service. A full mobilization requires the President and Congress to declare a war that’s bad enough to require the entire armed forces, and it’s more severe than the Presidential mobilization that was declared after 9/11. There are two ways to retire, and they require you to consider a certain amount of risk. However it looks like the Retirement Services section misread Table 4-2 on page 10 of AR 135-180. O-5 pay in 2018 tops out at $9280.20, and your High Three average of today’s O-5 pay would be roughly 97% of that (assuming 1.5% pay raises every year). Does reverting to an inactive ready reserve status continue to accrue this time if this does apply to me? You can read the full discussion of the qualifying criteria at this post from my friend (and National Guard servicemember) Ryan Guina: https://themilitarywallet.com/national-guard-and-reserve-early-retirement-age/. Your “point value for rank and years” number is simply a calculation used by the services to determine roughly how much money a point is worth. If you are younger than age 62, your pension multiplier would be 1%. At my MRD, I will have about 4600 points and 30 good retirement years (DA Form 5016) or 36 years for pay (from LES). For those who are in the BRS, the multiplier is 2.0%. I was told that upon reaching retirement age (60) my pay would be based on E-7 as this was my highest rank attained. The Green Weenie strikes again. If so please leave us a comment below. How does it work in situations that are effectively opposite the situations mentioned in the previous comments? Leave and Earning Statements (LES) or NAVCOMPT 2120, Pay Voucher. So their FERS Retirement pension formula comes together as… Let’s take an example. 7200 points divided by 360 = 20 years of active duty service. To be credited with a good year, you must earn a minimum of 50 points within 12 months and maintain your mobilization readiness (like completing the medical checklists). When your Reserve pension starts, it’ll be reduced (“offset”) by your VA disability compensation. You could ask a PSD supervisor about it, but you may need to consult a JAG to find the rules and the legal references. You’ll get the same payment each month for the calendar year. IRR may now be a very difficult place to get a good year. Most federal civilian employees hired after 1983 are automatically covered by FERS which is described as a “three-tiered retirement plan” including the following: As near as I’ve been able to learn, that can be accomplished in the IRR. Under 37 U.S.C. If you had retired under the active-duty system with Final Pay or High Three, your multiplier would have been 2.5% per year of service. https://www.dfas.mil/Portals/98/Documents/militarymembers/militarymembers/pay-tables/2020%20MilPay%20General.pdf?ver=2020-04-22-114904-720 Figure out how many years of service you’d technically have at age 60, check the numbers in the pay table for your retirement rank, and see whether that incorrect PEBD date gives you a different pay amount. Between 28 Jan 2008 and 30 Sep 2014, you had to mobilize and deploy to a combat zone for at least 90 days during the fiscal year. Otherwise if your DIEMS is after 7 September 1980 then your pension is High Three, calculated from the average of the highest 36 months of pay received during your career. For every one of those 90 days (or more) that you’re deployed to a combat zone (or mobilized for certain national emergencies) then your Reserve retirement starts the same number of days earlier. By the way, if you join AUSN you’ll have access to all their website tools for Reserve planning, including the latest on when you’ll hear from your service and the pay center. Let me know if you want any help with the numbers, and please tell us how your selection board goes! While I’m looking into that, here’s a link to another post on the same subject: https://the-military-guide.com/military-retirement-with-reserve-enlisted-and-officer-service/. Would this be a matter to present to DFAS? I know the. Last question. The final factor used in pension benefits calculation is a benefit multiplier. If a servicemember left active duty at 17 years for a Reserve/National Guard career, they’d already be on sanctuary tracking. There are 7 possible reductions to your FERS pension, and most federal employees will have at least 3 (Survivor benefit, taxes & FEHB). It’s actually three months of earlier retirement for every 90 days deployed in those situations, and in most cases the 90-day period had to be within a fiscal year. The parenthetical in your note is obsolete. To a Navy guy that took great pride, had perfect Evals, and even won Sailor of the Quarter before getting out. You can look at the example calculations I’ve done for David J. and Sophia below and follow the format with your numbers. You have to pay for health insurance through March 2021. Am I right for being concerned or is there a system in place that provides for soldiers who are as close to retirement as I am? Correct me if I am wrong, but should that active duty time should be added to my current base pay in the Navy. (Five years later, after signing up for Medicare, you’ll be eligible for Tricare For Life.) In other words, it is the basic pay in effect when you were ages 58, 59, and 60. MRD is 8/21/2020. My name is Dennis and I served 12 years in the Marine Reserves and I got out with 4.5 years time in grade as a E-6 Staff-SGT back in 1988. I was out of the service for 3 years. Any 90-day periods after September 2014 can cross over the fiscal-year dates. Per DoDI Instruction 1215.07, the Funeral Honors requires a minimum of two hours duty. Regarding the early reserve retirement date (subtracting 90 days at a time from age 60) I was hoping to get some clarification. Doug have Greg Potts contact me. Because you’ll be using the newest set of pay tables at age 60, you’ll still benefit from the pay increases between now and your 60th birthday– as well as any possible longevity increases in the O-3E row. thanks. I left active duty, had one bad year in the reserve, and have since had all good years. Let me know if you have any questions, but for most Reserve/Guard members at age 60 the premiums are more expensive than the coverage is worth. Instead a Reserve/Guard member would drill (and do AT) for at least three more years to reach 20 “good years” of service, and then would be eligible for a Reserve/Guard (“non-regular”) pension. The HRC can be reached by calling 502-613-8950 or by visiting https://www.hrc.army.mil/tagd/reducedageretirement. Concerning retirement, if I am unable to retain my commissioned rank my pension drops significantly upon reverting back to E-6. Can you please provide me with assistance in making the correction decisions. Once you know your gross pension – the next step is to figure out your net. Just about any lawyer or paralegal should have the tools to research the law and the case history, although a military lawyer will be more familiar with recent precedents. In today’s dollars your pension would be roughly: (5100 points / 360) x 2.5%/year x ($5291.40/month x 96%) = $1800/month. Your High-3 is the highest average *basic pay* you earned during any 3 consecutive years of service. Both know policy inside and out. What I’m about to describe is from .39F, and I sincerely hope it’s fixed in .39G. In specific terms, you’re assuming that military pay maintains pace with the Employment Cost Index. Any number of combinations that add to 90 days would count. I am closing in on my 60th birthday in December 2020 and should have 50 points for the Apr 2020 – Apr 2021 retirement year by my birthday. Also, I was informed about the use of the “Value of a Point” table which seems to be the same, once converted, to the current military pay tables listed on DFAS/MyPay. Copyright © 2020 Shilanski & Associates, Inc. Shilanski & Associates, Inc., is a financial planning firm for federal employees. This can be accomplished if you show up for drills on at least 10 of the 12 months (or complete enough other assignments), then you’ve met the intent of a good year. A retiree with 20 years of service would have a service percent multiplier of 50 percent: 2.5% x 20 years = 50%. I have used the calculators formulas etc, and what I have doesn’t match what DFAS has? Thanks for the update, Greg– do you happen to have a link to that reference for others to use? 2. (That’s completely separate requirement from three years’ time in grade.) The complexity comes in how you calculate your High-3 Salary, and what really counts towards your Years of Creditable Service. I have 8 yrs of active (1977-1984) , 20 yrs of Reservist. I’m familiar with today’s Reserve retirement rules, but not the changes from earlier years. Letter from Chair Powell to Secretary Mnuchin regarding emergency lending facilities Recent Posting - 11/20/2020 . I’m going to assume that you did not deploy to a combat zone after 28 January 2008 for at least 90 days during a fiscal year. https://militarypay.defense.gov/Pay/Retirement/reserve/. I have 10 years of just Reserve time. If your PEBD error is even close to affecting this calculation then it’s worth correcting it to the right date.